Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • bentaygahybrid-main.jpg
      view gallery
      6 photos
      2021 Bentley Bentayga Hybrid
      g80.jpg
      view gallery
      9 photos
      2021 NACTOY finalists
      zoox_3.jpg
      view gallery
      6 photos
      Zoox robotaxi
      2021_nissan_kicks_3.jpg
      view gallery
      8 photos
      2021 Nissan Kicks
    • 1PLANT-MAIN_i.jpg
      How suppliers and automakers saved the industry amid a pandemic
      Automakers, suppliers tackle new crises together
      HONDA_20190508_FINAL.jpg
      Honda, Toyota most preferred by suppliers
      Lawsuit challenges Trump's authority on steel, auto tariffs
    • Wage subsidy kept sector afloat in 2020 with big players using government aid
      Magna: Vehicle assembly’s hired gun
      newalexa.jpg
      FCA first automaker to integrate new Amazon Alexa Custom Assistant
      Shift78Image_0.png
      PODCAST: Magna’s Sherif Marakby draws the blueprint for an electric future
    • MACHE-MAIN_i.jpg
      Ford delays some Mustang Mach-E deliveries up to 8 weeks in Canada, U.S.
      Ontario's stay-at-home order doesn't change much for province's auto industry
      BrightDrop.jpg
      GM launches commercial EV brand, with FedEx as first customer
      CES-MAIN_i.jpg
      All-digital format puts CES to the test
    • 6NAFTA-5.jpg
      Some Mexican automakers want more time to meet USMCA rules, official says
      Japan Prius prod 20 web.jpg
      Japan may ban sales of new ICE vehicles in mid-2030s, report says
      Ford Explorer 2016-MAIN_i.jpg
      Ford recalls 25,200 Explorers in Canada for suspension problem
      Biden? Trump? Either way, Canada faces big choices
    • Biden? Trump? Either way, Canada faces big choices
      TrumpReuters.jpg
      U.S. abruptly lifts tariffs on Canadian aluminum
      trump.png
      Aluminum tariff adds wrinkle just as USMCA gets going
      Trump reimposes Canadian aluminum import tariff to stem ‘flood’; Canada retaliates
    • Porsche, Apple Music partner on infotainment
      Vietnam-tied hackers said to target auto industry
      Vehicle screens go super-sized at CES as tech catches up
      All in a day's work
    • Wuhan honda prod web.jpg
      Automakers push to reopen plants with testing and lots of masks
      Ford, UAW reach tentative pact in U.S. with billions worth of investment
      GM Canada says it will find 2,400 jobs for Oshawa workers
      FCA to idle Ontario minivan plant for 8 days, union says
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Lancia
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • Toronto Auto Show
  • Opinion
    • Blogs
    • BrightDrop.jpg
      Big questions remain when it comes to GM's $1-billion CAMI plant
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
      Unifor exceeded its goals during Detroit 3 talks
      How and why GM brought truck assembly back to Oshawa
  • Canada Conversations
  • EVENTS & AWARDS
    • 2019 Canadians To Watch
    • 2019 Auto News Canada All Stars
    • Best Dealership To Work For
    • Canada Congress
    • Retail Forum: Dealer Discussions
    • Leading Women Roundtables
    • Dealerships reboot for millennials
      Communication is key to keeping dealership family together
      How giving back to their communities helps dealerships succeed
      Green dealerships good for business and for hiring
    • Embrace millennials and technology or be left behind, dealers warned
      walker.jpg
      Magna CEO says USMCA will mean 'more jobs, more investment' in Canada
      Top auto execs to address industry upheaval at 2020 Canada Congress
      VIDEO: Why Ford's Hinrichs is bullish on USMCA
  • Jobs & Classifieds
  • +MORE
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Best Practices
March 16, 2020 12:00 AM

A BMW waiting room built for show

Stephanie Wallcraft
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Policaro BMW

    In addition to being a waiting room, the Bavaria Lounge at Policaro BMW in Brampton is used for exclusive events.

    A BMW dealership in Brampton, Ont., has created a premium lounge and membership experience that is generating loyalty and referral business from a subset of high-income customers, say brand executives. 

    While all BMW dealerships are required to create a lounge-style space for their premium customers, Policaro BMW, about 50 kilometres west of downtown Toronto, exceeded those requirements with its Bavaria Lounge, said Kevin Marcotte, national manager of i, M and special vehicles for BMW Canada. 

    “Their Bavaria Lounge ... was part of their vision when they began planning Policaro BMW,” Marcotte said. “It is a space where high-luxury customers can enjoy the ultimate premium ownership experience.” 

    The lounge, which was integrated into the second floor of Policaro BMW when it was built in 2016, features granite countertops, contemporary furnishings, a bar, a golf simulator and connected flat-screen TVs. The space was designed by Oakville, Ont.-based architectural designer Ferris Rafauli, who designed the Sher Club — the exclusive, members-only space in Toronto’s Air Canada Centre that was opened by Toronto rapper Drake. 

    EXCLUSIVE ACCESS 

    That star-power connection drew customers to the dealership as soon as it opened, said Dealer Principal Francesco Policaro. 

    “With [Ferris’s] name behind it, being a new store, we got a lot of premium customers calling in requiring vehicles, directly from Ferris’s clientele,” Policaro told Automotive News Canada. 

    “To have a high-end designer behind it [provided] business-to-business marketing.” 

    Lounge access at all BMW locations is restricted to customers purchasing the brand’s most high-end products: the 6-, 7and 8-series cars; M performance vehicles; X6 and X7 crossovers; and the i8 plug-in hybrid coupe. The lounge reflects expectations of people shopping in these premium segments, Policaro said. 

    “Prior to opening the dealership, I did a lot of research in regards to BMW clientele because this was our [group’s] first BMW dealership. One of the things I learned was that it’s almost like there’s two different classes of customers. A 3-series customer is very different than a 7-series customer. 

    “The idea was to provide more of a premium service to these elite customers.” 

    LOUNGE ... AND MORE 

    Customers receive access to the lounge plus valet home or office pickup for service appointments, basic detailing, courtesy vehicles equivalent to their own and invitations to dealership-hosted events such as track days or wine tastings. 

    An optional upgrade to an Experience Plus membership, costing $795 per year, adds catered meal service at the lounge, premium detailing, a 72-hour priority valet service guarantee and winter tire storage. 

    Brynn Winegard, a Toronto-based retail and marketing expert, said premium spaces such as the Bavaria Lounge are key to attracting high-end customers to brick-andmortar stores. 

    “What we talk about [as] best practice is creating what is called ‘being spaces,’” Winegard said. “Holt Renfrew has done this, Nordstrom does this, Microsoft does this, Apple does this to some extent. What it is, is a circumstance in their retail environment where their consumers can just go and be. The idea is effectively that that would drive foot traffic.” 

    LUXURY LETHARGIC 

    Luxury sales in Canada are under pressure. According to the Automotive News Data Center, BMW brand sales were down 6.1 per cent in 2019 compared with 2018, while the overall luxury segment fell 4.5 per cent. Across the board, new-vehicle sales declined 3.6 per cent in 2019.

    “Sales are down more so than the total industry because there aren’t as many truck and SUVs models for luxury buyers to choose from,” said Robert Karwel, J.D. Power’s senior manager of Automotive Practice in Canada. 

    “All of those trucks and SUVs provided some additional buoyancy to the mainstream market, which the luxury industry did not have as much of, or in the case of pickup trucks none at all. ... Luxury would have fared a bit better if it had a few more utility-body-style nameplates out there in ’19.” 

    Inviting customers into a space without the pressure of making a sale is crucial to remaining competitive in today’s evolving retail business model, Winegard said. 

    “In the automotive category, we’ve seen it’s plagued with that used-car salesman bad [reputation],” she said. “The amount of time spent in a retail space directly increases ... purchase intent. 

    “It’s not enough anymore in retail, and especially in bricks-and-mortar retail, to sell things. You have to have a reason for people to show up. 

    “What brands are hoping for, especially in the automotive category, is something we call consumer tribalization....You go to see and be seen and to interact with your friends so that you create a BMW tribe. ... You’re borrowing from the brand’s identity in order to build your own identity.” 

    PLACE TO WAIT, OR CELEBRATE 

    Although Policaro declined to disclose the upfront cost of building the lounge, he said its maintenance costs involve the salary of one full-time staff member — “she is responsible to make sure that [customers] get the most optimal and premium experience,” he said — plus an estimated monthly cost of $500 for consumables. 

    While some customers use the lounge as a waiting area if they choose to bring their vehicle in for service, others have asked to hold meetings or social events in the space, Policaro said. The dealership also uses it as a space for executing high-value purchase agreements and for hosting dinners. 

    Policaro cited one customer who purchased an i8 after going through a life-changing experience. 

    “He decided after he almost passed away that he wanted to buy this i8. It was a special moment for him. 

    “We invited him to the lounge, and he invited 30 of his closest friends and family. We did a breakfast for him wit Champagne and orange juice and a cake. So, it was a different kind of experience, and then we did the unveiling during the delivery.” 

    The lounge, Policaro said, is generalizing loyalty as well as repeat and referral business. 

    “When you provide an optimal experience, they come back, and they refer lot of people, too. We’ve got a lot of great responses from customers and referral from it. It seems to be working quite well.” 

    Policaro BMW

    Their Bavaria Lounge at Policaro BMW features a golf simulator.

    RECOMMENDED FOR YOU
    How a small-town GM store casts a wide net to land customers and stay successful
    Recommended for You
    How a small-town GM store casts a wide net to land customers and stay successful
    How a small-town GM store casts a wide net to land customers and stay successful
    How dealers turn tires into a revenue stream and new-car sales
    How dealers turn tires into a revenue stream and new-car sales
    Dealer reaping the rewards of loving the community
    Dealer reaping the rewards of loving the community
    Digital Edition
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Now

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    PO Box 243
    Station A
    Windsor, ON
    N9A 6K7

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Lancia
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
      • Auto Shows
        • Toronto Auto Show
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Canada Conversations
    • EVENTS & AWARDS
      • 2019 Canadians To Watch
      • 2019 Auto News Canada All Stars
      • Best Dealership To Work For
      • Canada Congress
      • Retail Forum: Dealer Discussions
      • Leading Women Roundtables
    • Jobs & Classifieds
    • +MORE
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION